IMPORTANT DISCLAIMER: The information contained in this article is for informational purposes only and should not be construed as professional advice. Federal Benefits Service does not provide investment, legal, or tax advice. It is very important to do your own analysis and seek independent professional guidance before making any decisions regarding your federal benefits. All individuals are responsible for their own benefit selections and should consult with qualified professionals.

The Postal Service Health Benefits (PSHB) Program represents a fundamental shift in healthcare coverage for United States Postal Service employees, annuitants, and their families. This new program, mandated by the Postal Service Reform Act of 2022, officially commenced on January 1, 2025, replacing the Federal Employees Health Benefits (FEHB) Program for postal workers.

NO INVESTMENT ADVICE: This content does not constitute investment advice or recommendations for any specific benefit plans or financial decisions. Readers must conduct their own research and analysis.

1. PSHB Completely Replaces FEHB Coverage for Postal Service Personnel

The Postal Service Health Benefits Program is not an addition to existing coverage: it is a complete replacement of FEHB for all eligible postal employees and retirees. Effective January 1, 2025, postal service employees and annuitants are no longer eligible to enroll or continue enrollment in any FEHB plan.

This transition affects all active postal employees, postal retirees (annuitants), and their eligible family members. The PSHB operates as a separate program within the broader FEHB framework, providing health insurance coverage exclusively to the postal service workforce.

CRITICAL NOTICE: Failure to understand this transition could result in loss of healthcare coverage. All postal service personnel must ensure they have selected appropriate PSHB coverage.

The legal framework establishing PSHB requires that all postal service health coverage be administered through this new system. There are no exceptions or grandfather clauses that permit continued FEHB enrollment for postal workers. This represents a permanent structural change in federal benefit administration for the postal service.

WARNING: Postal service employees cannot return to FEHB plans. This change is irreversible under current federal legislation.

2. Open Season Enrollment Period Determined Your 2025 Coverage

The initial PSHB Open Season enrollment period occurred from November 11, 2024, through December 9, 2024. This enrollment window was the exclusive opportunity for postal service employees and annuitants to select their preferred PSHB health insurance plan for 2025 coverage.

During this enrollment period, eligible participants were required to review available plan options and make active selections. The enrollment process included evaluation of plan premiums, deductibles, copayments, provider networks, and covered services.

Check PSHB coverage options and enroll here.

COMPLIANCE REQUIREMENT: Participation in Open Season enrollment was the only method to ensure selection of preferred coverage options. Failure to participate resulted in automatic enrollment assignments.

Future PSHB Open Season periods will follow the standard federal benefits calendar, typically occurring in late fall for the subsequent calendar year coverage. All postal service personnel must participate in annual Open Season enrollment to modify their health plan selections.

IMPORTANT LIMITATION: PSHB enrollment opportunities are restricted to designated Open Season periods and qualifying life events. Outside these windows, plan modifications are generally not permitted.

3. Automatic Enrollment Procedures for Non-Participants

Postal service employees and annuitants who did not make active plan selections during the November-December 2024 Open Season were automatically enrolled in comparable PSHB plans by the Office of Personnel Management (OPM). This automatic enrollment process was designed to prevent gaps in healthcare coverage.

The automatic enrollment algorithm considered factors such as previous FEHB plan selections, geographic location, and coverage requirements to assign the most appropriate PSHB plan. However, automatically assigned plans may not align with individual preferences or healthcare needs.

CRITICAL WARNING: Automatic enrollment does not guarantee optimal plan selection. Automatically enrolled participants may face higher out-of-pocket costs, limited provider networks, or coverage restrictions that do not meet their specific healthcare requirements.

Individuals who were automatically enrolled retain the right to modify their selections during subsequent Open Season periods. However, they must actively participate in future enrollment windows to change their coverage.

NO GUARANTEE: Automatic enrollment assignments are made based on available data and algorithmic matching. There is no guarantee that automatically assigned plans will provide optimal coverage or cost efficiency for individual circumstances.

4. Medicare Part B Enrollment Mandatory for Eligible Retirees

The Postal Service Reform Act of 2022 established mandatory Medicare Part B enrollment requirements for Medicare-eligible postal service annuitants and their Medicare-eligible family members. This requirement is a condition of continued PSHB plan enrollment.

Medicare-eligible postal retirees must enroll in Medicare Part B and maintain active enrollment to retain their PSHB coverage. This represents a significant change from previous FEHB policies, which did not require Medicare enrollment.

LEGAL REQUIREMENT: Failure to enroll in and maintain Medicare Part B enrollment will result in loss of PSHB coverage for Medicare-eligible individuals.

The Medicare Part B enrollment requirement extends to Medicare-eligible spouses and other family members covered under PSHB plans. All eligible individuals must comply with this mandate to maintain family healthcare coverage.

FINANCIAL IMPACT WARNING: Medicare Part B enrollment involves monthly premium payments directly to Medicare, in addition to PSHB plan premiums. This represents an additional healthcare cost that must be factored into retirement planning.

Postal service annuitants approaching Medicare eligibility must proactively enroll in Medicare Part A and Part B during their Initial Enrollment Period to avoid penalties and ensure continuous PSHB coverage eligibility.

5. Complementary Federal Benefits Programs Remain Available

While the Flexible Spending Account for Federal Employees (FSAFEDS) is not available under PSHB, postal service employees and annuitants retain eligibility for other federal government-sponsored insurance programs.

Available Programs Include:

• Federal Employees Dental and Vision Insurance Program (FEDVIP)
• Federal Employees Group Life Insurance (FEGLI)
• Federal Long-Term Care Insurance Program (FLTCIP)

These complementary benefit programs operate independently of PSHB and continue under existing enrollment procedures and coverage terms. Enrollment in these programs is not disrupted by the transition from FEHB to PSHB.

IMPORTANT CLARIFICATION: FEDVIP, FEGLI, and FLTCIP enrollment and coverage continue unchanged. These programs maintain their existing enrollment windows, premium structures, and benefit provisions.

Postal service personnel should review their enrollment status in these complementary programs to ensure comprehensive benefit coverage. Each program has distinct enrollment requirements, coverage limitations, and premium structures.

PROCEDURAL NOTICE: Enrollment modifications for FEDVIP, FEGLI, and FLTCIP must be made during their respective enrollment periods or qualifying life events, independent of PSHB Open Season schedules.

PSHB Plan Changes Coming in 2026: Summary

The following summary is for informational purposes only and reflects anticipated adjustments for the 2026 PSHB plan year. Do your own research, verify with official OPM sources, and consult qualified professionals before making any enrollment decisions. No investment advice.

• Premiums: Average PSHB premiums are expected to increase by approximately 11–12% over 2025 rates. Estimated impact is roughly $13–$32 more per paycheck, depending on tier (Self Only, Self Plus One, or Family).
• Tier comparisons: Some Self Plus One plans may be more expensive than comparable Family plans. Careful comparison during Open Season is essential.
• Plan discontinuations: Two National Association of Letter Carriers (NALC) PSHB plans will be discontinued in 2026. If a member’s plan is discontinued and no active selection is made, the member will be automatically enrolled in the lowest-cost nationwide PPO plan (GEHA Elevate).
• Plan availability: The number of available plans will contract slightly, with a greater reduction among certain local options.
• New offerings: Select new plan options will be introduced (for example, Kaiser’s Prosper plan in certain regions).
• Cost parameters: Government contributions and maximum biweekly/monthly out-of-pocket rates will be updated for 2026.

ACTION REQUIRED: Review PSHB plan changes each Open Season and compare updated rates carefully. It is very important to do your own analysis of premiums, government contributions, out-of-pocket maximums, provider networks, and covered services. Set a meeting in Benefits Review with qualified professionals. This content is not investment, legal, or tax advice.

Critical Action Items and Professional Consultation Requirements

The transition to PSHB requires careful analysis and planning. It is very important to do your own analysis of plan options, costs, and coverage requirements. Set a meeting in Benefits Review with qualified professionals to evaluate your specific circumstances.

MANDATORY DISCLAIMER: This information is provided for general informational purposes only. Individual circumstances vary significantly, and professional consultation is essential for appropriate benefit planning.

NO LIABILITY: Federal Benefits Service assumes no responsibility for decisions made based on this information. All individuals must verify current program details and requirements through official government sources.

For comprehensive benefit analysis and enrollment assistance, professional consultation services are available through Federal Benefits Service. Additional educational resources and program details can be accessed through our specialized federal benefits courses and materials.

FINAL WARNING: Federal benefit programs are subject to legislative changes and administrative modifications. All participants must stay informed of current requirements and maintain compliance with all applicable regulations and enrollment procedures.